ONEOK (OKE) just posted a strong first quarter, with net income up 12% and adjusted EBITDA up 13%, and raised its 2026 earnings guidance, a combination that quickly drew more investor attention.

ONEOK's recent earnings update comes on the back of firm share price momentum, with a year to date share price return of 19.44% and a 5 year total shareholder return of 121.36%. This suggests investors have been rewarding the stock as confidence around its outlook has strengthened.

If ONEOK's move has you looking across the energy and infrastructure space, it may be worth scanning other power grid focused opportunities through the 37 power grid technology and infrastructure stocks

With ONEOK trading at $88.79, sitting around 7% below the average analyst price target and flagged as modestly undervalued by some models, the core question is simple: is there still an opportunity here, or is the market already pricing in future growth?

Most Popular Narrative: 2% Overvalued

The most followed narrative pegs ONEOK's fair value around $87.30, slightly below the last close at $88.79. This frames the stock as mildly expensive on this view.

Strong integration and synergy capture following recent acquisitions (e.g., EnLink, Magellan, Medallion) are driving operating leverage and margin expansion, with further cross-asset optimization and record blending volumes anticipated to increase net margins and support double-digit EBITDA growth in the near to medium term.

Read the complete narrative. Read the complete narrative.

The fair value call rests on a tight set of earnings, margin and cash flow assumptions that all have to line up. Fee based growth, export optionality, and acquisition synergies sit at the center of that story. Want to see exactly how those moving parts are stitched together into one valuation case?

Result: Fair Value of $87.30 (OVERVALUED)

However, tighter commodity spreads that pressure margins and higher leverage from recent acquisitions still remain in the background as potential spoilers for that upbeat scenario.

Another View: Cash Flows Point to a Very Different Price

While the most popular narrative sits around a fair value of $87.30 and calls ONEOK slightly overvalued, the SWS DCF model suggests something very different. On that cash flow view, the stock at $88.79 is trading roughly 50% below an estimated value of $176.53. This raises a clear question: is the market underestimating long term cash generation, or are the DCF assumptions simply too generous?

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out ONEOK for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 47 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

Seeing mixed signals on value, risks, and rewards so far? Move quickly, review the underlying metrics yourself, and weigh up the 3 key rewards and 2 important warning signs.

Looking for more investment ideas?

If ONEOK has sharpened your focus, do not stop here, the wider market still holds plenty of opportunities that fit very different portfolio goals.

• Target stability and income by checking out companies tagged as 14 dividend fortresses that may suit a long term cash flow focused approach.
• Hunt for quality on sale by scanning the 47 high quality undervalued stocks that combine solid fundamentals with potentially appealing prices.
• Strengthen your downside protection by reviewing 68 resilient stocks with low risk scores that appear more resilient on key risk metrics.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.